Brazil approves guidelines for December energy auctions

Wind turbines in Brazil. Author: josep. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

Aug 8 (Renewables Now) - Brazil's Ministry of Mines and Energy published on Monday the guidelines for next two energy auctions -- A-4 and A-6.

Both tenders will negotiate power contracts from hydro, wind and biomass sources. A-4 will also award contracts to solar power, while A-6 will allow coal and natural gas, the ministry said.

Under the ordinance published at the Official Gazette, the power sector regulator Aneel is expected to hold the auctions in December of this year.

New energy auctions, such as these, are intended for the contracting of the output from power plants under development or construction. The beginning of supply under the contract is scheduled for January 1, 2021 in the A-4 auction, and the start of 2023 for the A-6.

In both auctions hydropower plants (HPPs) will compete for 30-year contracts. For wind, solar and biomass the term will be 20 years, while for fossil-fuelled power plants it is 25.

The new rules are contained in Ordinance No. 293 available at http://pesquisa.in.gov.br/imprensa/jsp/visualiza/index.jsp?jornal=1&pagina=62&data=07/08/2017

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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